PLEDGE FOR A PUBLIC ASSET DECLARATION FRAMEWORK Asset... · 2018-03-02 · PLEDGE FOR A PUBLIC...

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PLEDGE FOR A PUBLIC ASSET

DECLARATION FRAMEWORK

Governance, Integrity, Accountability and Transparency (GIAT) Coalition

02 March 2018

PLEDGE FOR A PUBLIC ASSET DECLARATION FRAMEWORK

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I Purpose

1. The purpose of this Pledge is to introduce a public asset declaration

framework (“PADF”) within the existing legal framework that can be

immediately adopted before the upcoming general election.

2. The PADF is substantially based on public asset declaration systems in

other Asian jurisdictions, particularly Indonesia and Hong Kong.

3. The PADF would be in line with the following rationales and obligations:

3.1. To promote the principles of transparency and accountability

which represent the cornerstone of a representative democracy.

3.2. To eradicate corruption which is an insidious plague that

undermines the rule of law and democracy.

3.3. To fulfil Malaysia’s international commitment and obligations

under the United Nations Convention against Corruption which

Malaysia ratified on 24.09.2008 (“UNCAC”).

3.4. To ensure the free flow of information concerning public officials

which is guaranteed under Article 10(1) of the Federal

Constitution.

II Background

4. Malaysia, though a country founded as a participatory democracy, does

not have a comprehensive asset declaration system. By ratifying UNCAC,

Malaysia has indirectly undertaken a commitment to establish an effective

public asset declaration framework as envisaged in Article 8 of the UNCAC,

which provides:


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“Article 8. Codes of conduct for public officials

1. In order to fight corruption, each State Party shall promote,

inter alia, integrity, honesty and responsibility among its public

officials, in accordance with the fundamental principles of its legal

system.

2. In particular, each State Party shall endeavour to apply, within

its own institutional and legal systems, codes or standards of

conduct for the correct, honourable and proper performance of

public functions.

3. For the purposes of implementing the provisions of this article,

each State Party shall, where appropriate and in accordance with

the fundamental principles of its legal system, take note of the

relevant initiatives of regional, interregional and multilateral

organizations, such as the International Code of Conduct for Public

Officials contained in the annex to General Assembly resolution

51/59 of 12 December 1996.

4. Each State Party shall also consider, in accordance with the

fundamental principles of its domestic law, establishing measures

and systems to facilitate the reporting by public officials of acts of

corruption to appropriate authorities, when such acts come to their

notice in the performance of their functions.

5. Each State Party shall endeavour, where appropriate and in

accordance with the fundamental principles of its domestic law, to

establish measures and systems requiring public officials to

make declarations to appropriate authorities regarding, inter

alia, their outside activities, employment, investments, assets

and substantial gifts or benefits from which a conflict of

interest may result with respect to their functions as public

officials.

6. Each State Party shall consider taking, in accordance with the

fundamental principles of its domestic law, disciplinary or other


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measures against public officials who violate the codes or standards

established in accordance with this article.”

(our emphasis added)

5. The existing practice is carried purely based on directives and circulars.

5.1. Top Malaysian government officials – The said category is not

defined. They are required to confidentially declare assets to the

Prime Minister. The said declarations are accessible to the Chief

Commissioner of the Malaysian Anti-Corruption Commission

(“MACC”);

5.2. The civil service - section 4 of the Public Officers Regulations

(Conduct and Discipline) 1993 states that officials are not allowed

to have private interests come into conflict with public duties.

Regulation 10 of the same regulations provides that members of

the civil service and their immediate family must declare all assets

to their respective Heads of Departments within a period of not

more than five (5) years of the date of declaration. Officers are

required to make declarations when they: are elected into office;

are required by the government; obtain additional assets; and

when they dispose of assets. The asset declaration process for

public servants has been automated via the Human Resource

Management Information System (HRMIS) through Circular No.

12 Year 2005, “Pelaksanaan Sistem Maklumat Pengurusan Sumber

Manusia”. The Human Resource Department of respective

ministries verifies the asset declaration of public servants with

the Asset Secretariat ensuring the completeness and compliance

of declarations.

5.3. Members of Parliament - They are not legally required to

declare their assets. However, a Code of Ethics, approved by the


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Cabinet, requires that members declare assets every two years

including local and overseas bank accounts, landed property,

vehicles, jewellery, direct or proxy stakes in companies and

equities held;

5.4. Ministerial special officers - The Delivery Task Force (DTF) on

Anti-Corruption National Key Results Area (NKRA) decided that

all ministerial special officers must declare assets to the MACC.

The declaration format is similar to that applicable to civil

servants. As of April 2015, only three Special Officers have

reportedly declared their assets to the Chief Commissioner.

6. The existing asset declaration practice in Malaysia is not uniform and does

not require public declaration. In consideration of Malaysia’s status as a

democratic nation and the obligations it has undertaken internationally,

the political party / the coalition named herein agree to the following:

III Objectives

7. The objective of this Pledge is to provide an interim measure for public

asset declaration, in the form of a framework that political party would

pledge and could commit to. The political party and/or the coalition which

wins the next general election, at both the federal and state level, will carry

out the following:

7.1. If the political party and/or the coalition occupies a simple

majority of seats in Parliament, such party and/or coalition will:

a) cause all members of the Cabinet appointed under Article

43(2) of the Federal Constitution (including the Prime

Minister) to publicly declare their assets in accordance

with the framework set out in this Pledge (“Cabinet

Members”);


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b) take all necessary steps to introduce a federal legislative

bill on public asset declaration in Parliament in

accordance with the framework set out in this Pledge.

7.2. If the political party and/or the coalition occupies a simple

majority of seats in the State Legislatures, such party and/or

coalition undertakes to cause all members of the State Executive

Council (including the Chief Minister) to publicly declare their

assets in accordance with the framework set out in this Pledge

(“State EXCO Members”).

IV Scope of PADF

8. The PADF applies to all Cabinet Members and State EXCO Members, and

their immediate family members.

9. The PADF covers both movable and immovable assets, business interests

and gifts as particularized in the Asset Declaration Form (“ADF”) annexed

to this Pledge (with explanatory notes).

10. The MACC, as the statutory commission tasked to promote the integrity

and accountability of the public sector under section 2(a) of the MACC Act

2009, will act as the monitoring body for the PADS.

V Obligations

11. The political party and/or coalition which occupies a simple majority of

seats in Parliament, such party and/or coalition undertakes to:

11.1. To take all necessary steps to have the Cabinet Members fill up the

ADF and submit the same to the MACC:

a) Immediately upon their appointment as Cabinet Members;

and,

b) Annually thereafter until the next general elections.


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11.2. To take all necessary steps to have the Cabinet Members to report

to the MACC any single transaction of or exceeding RM100,000 or

three months’ salary;

11.3. To take all necessary steps to assist MACC in having all the

submitted ADF’s and reported disclosures, upon verification,

made available to the public by way of, at the very least, the

following methods:

a) An online website, in a manner easily comprehensible to

the public and in ‘machine readable’ format; and

b) Physical copies, to be made available upon request at the

offices of all local councils, subject to a nominal

administrative fee.

11.4. To take all necessary steps to introduce a federal legislative bill on

public asset declaration in Parliament, such bill providing for

mandatory public asset declaration for the category of persons in

paragraph 7.1(a) and 7.2 above, and:

a) All members of Parliament;

b) All members of the State Legislatures; and

c) All senior officers of a public body. This should include

judges of the High Court, Court of Appeal or Federal Court,

and all senior civil servants.

12. The political party and/or the coalition occupies a simple majority of seats

in the State Legislatures, such party and/or coalition undertakes:

12.1. To take all necessary steps to have the State EXCO Members fill up

the ADF and submit the same to the MACC:

a) Immediately upon their appointment as State EXCO

Members; and


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b) Annually thereafter until the next general elections.

12.2. To take all necessary steps to have the State EXCO Members to

report to the MACC any single transaction of or exceeding

RM100,000 or three months’ salary;

12.3. To take all necessary steps to assist MACC in having all the

submitted ADF’s and reported disclosures, upon verification,

made available to the public by way of, at the very least, the

following methods:

a) An online website, in a manner easily comprehensible to

the public and in ‘machine readable’ format; and

b) Physical copies, to be made available upon request at the

offices of all local councils, subject to a nominal

administrative fee.

VI Implementation of this Pledge

13. The political party / the coalition named herein undertake to take all

necessary measures, including disciplinary actions, to enforce their

obligations in this Pledge to effectively combat corruption by

meaningfully promoting transparency and accountability.

VII Amendment

14. No modification or amendment of any kind of this Pledge shall be valid

unless agreed to by all the parties herein by writing.


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IN WITNESS WHEREOF, the undersigned as the duly authorized representative

from the political party named herein, hereby sign this Pledge:

Signature :

Name of the representative

:

Position of the

representative in the

political party

:

Name of the Political Party

:


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ANNEXURE

ASSET DECLARATION FORM1

A. PERSONAL DETAILS

1. Name :

2. Identification Card No. :

3. Ministry :

4. Position :

5. Job Scope :

6. Addresses

a. Work :

i. Email :

b. Home :

i. Email :

7. Contact Numbers

a. Work :

b. Home :

c. Mobile :

8. Marital Status :

9. Reporting Period :

1 To be filled in separately by the person declaring, the person’s spouse and the person’s children.


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B. FAMILY DETAILS

1. Spouse/s

Name IC No. Occupation and

Work Address

Residential

Address

2. Children under Care

No. Name

IC No. / Birth

Certificate

Number

Name and

Address of

School /

Institution of

Learning

Residential

Address

3. Children not under Care

No. Name IC No. Occupation and

Work Address Residential Address

C. INCOME

1. Annual wage :

2. Total allowance :


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D. INTERESTS

1. Remunerated employment, directorships, office, profession, trades,

vocations etc:

a. _________________________________________________________

b. _________________________________________________________

c. _________________________________________________________

d. …

2. Unremunerated interests:

a. _________________________________________________________

b. _________________________________________________________

c. _________________________________________________________

d. …

E. ASSETS

1. Movable Property

No. Types

Purchaser,

Purchase Price

and Date and

Past and Current

Registered

Owners /

Beneficiaries

Value (in relevant

currency)

Start Date End Date

a. Bank Account No. and their respective Savings and Fixed Deposits

i. Local

__________________

__________________

__________________

–


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No. Types

Purchaser,

Purchase Price

and Date and

Past and Current

Registered

Owners /

Beneficiaries

Value (in relevant

currency)

Start Date End Date

ii. Foreign

__________________

__________________

__________________

b. Cash

i. RM

ii. US$

iii. …

–

c. Capital Products and Services (Local and Foreign)

i. Shares

__________________

__________________

__________________

ii. Stocks

__________________

__________________

__________________

iii. Debentures

__________________

__________________

__________________


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No. Types

Purchaser,

Purchase Price

and Date and

Past and Current

Registered

Owners /

Beneficiaries

Value (in relevant

currency)

Start Date End Date

iv. Bonds

__________________

__________________

__________________

v. Derivatives

__________________

__________________

vi. Unit Trusts

__________________

__________________

__________________

vii. Insurance

__________________

__________________

__________________

viii. Other capital products and services as provided by the Capital Markets and Services Act 2007

__________________

__________________

__________________

d. Other movable properties


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No. Types

Purchaser,

Purchase Price

and Date and

Past and Current

Registered

Owners /

Beneficiaries

Value (in relevant

currency)

Start Date End Date

i. Furniture

__________________

__________________

__________________

ii. Motor vehicles

__________________

__________________

__________________

iii. Jewelleries / Antiques / Arts and Cultural Objects

__________________

__________________

__________________

iv. Electronic gadgets

__________________

__________________

__________________

v. Musical instruments

__________________

__________________

__________________

vi. Sports equipment

__________________

__________________

__________________


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No. Types

Purchaser,

Purchase Price

and Date and

Past and Current

Registered

Owners /

Beneficiaries

Value (in relevant

currency)

Start Date End Date

vii. Club memberships

__________________

__________________

__________________

viii. Other

__________________

__________________

2. Immovable Property

No. Types

Purchaser,

Purchase Price

and Date and

Past and Current

Registered

Proprietors

Value (in relevant

currency)

Start Date End Date

a. Land

i. __________________

__________________

__________________

ii. __________________

__________________

__________________

iii. …


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No. Types

Purchaser,

Purchase Price

and Date and

Past and Current

Registered

Proprietors

Value (in relevant

currency)

Start Date End Date

b. Building

i. __________________

__________________

__________________

ii. __________________

__________________

__________________

iii. …

c. Residential properties

i. __________________

__________________

__________________

ii. __________________

__________________

__________________

iii. …

F. CREDITS

No. Debtors Date

Accrued Date Due

Value at the Time

of Reporting (in

relevant

currency)

a.

b.

c.


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G. LIABILITIES

No. Creditors Date

Accrued Date Due

Value at the

Time of

Reporting (in

relevant

currency)

a.

b.

c.

H. GIFTS AND/OR SPONSORSHIPS

No. Giver Place and Time Amount

a. Name :

Address :

b. Name :

Address :

c. Name :

Address :

I. OTHER ACTIVITIES

No. Activities Date Amount

a.

b.


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EXPLANATORY NOTE FOR THE

ASSET DECLARATION FORM

A. PERSONAL DETAILS

1. Name : Full name including nickname

2. Identification Card No. : New and old national registration identification card number

3. Ministry : Name of ministry

4. Position : Position held in the ministry

5. Job Scope : Main powers, duties and functions of the position held in the ministry

6. Addresses

a. Work : Full address of the ministry

i. Email : Work email address

b. Home : Full personal mailing address of residence

i. Email : Personal email address

7. Contact Numbers

a. Work : Office telephone number including extension

b. Home : Residential telephone number

c. Mobile : Personal mobile phone number

8. Marital Status : Single OR Married OR Divorced OR Widow

9. Reporting Period : The date of reporting if it is a first-time declaration. The preceding and current dates of reporting for subsequent declarations.


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B. FAMILY DETAILS

1. Spouse/s

No. Name IC No. / Birth

Certificate Number

Name and Address of

School / Institution of

Learning

Residential Address

Full name including nickname

New national registration card

number or if under 12 years

old, birth certificate

number

Name of school or any institution of learning and its

full address

Full residential address

2. Children under Care (child/ren who are living dependently on the person declaring)

No. Name IC No. Occupation and Work Address

Residential Address


New and old national

registration card number

Occupation and full workplace

address


3. Children not under Care (child/ren who are living independently from the person declaring)

No. Name IC No. Occupation and Work Address

Residential Address


New and old national

registration card number

Occupation and full workplace

address



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C. INCOME

1. Annual wage : (amount)

2. Total allowance : (amount)

D. INTERESTS

1. Remunerated employment, directorships, office, profession, trades, vocations etc (any job, membership, post or position which is remunerated):

a. Name of interest, full mailing address of the job, membership, post or position, and the amount of annual remuneration at the date of reporting;

b. _________________________________________________________

2. Unremunerated interests:

a. Name of interest and full mailing address of the job, membership, post or position

b. _________________________________________________________

E. ASSETS

1. Movable Property

No. Types

Purchaser,

Purchase Price

and Date and Past

and Current

Registered

Owners /

Beneficiaries

Value (in relevant

currency)

Start Date End Date

a. Bank Account No., Bank Names and

their respective Savings and Fixed

Deposits

i. Local

ii. Foreign

–

b. Cash

–


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No. Types

Purchaser,

Purchase Price

and Date and Past

and Current

Registered

Owners /

Beneficiaries

Value (in relevant

currency)

Start Date End Date

c. Capital Products and Services (Local and

Foreign)

i. Shares, Stocks and/or Equities

[Company names and their respective

shares, stocks and/or equities units

(include names of companies related to

the company in which shares, stocks

and/or equities are held)]

ii. Debentures (Names of issuers, their

respective indentures titles and where

the indentures are kept)

iii. Bonds [Entity names, their bonds

agreement titles and where the

agreements are kept (include names of

entities related to the entity in which

bonds are held)]

iv. Derivatives [Names of all parties

involved and their respective

underlying assets (include any relevant

detail for identifying the underlying

assets)]

v. Unit Trusts (Names of funds and their

respective managers/ providers)

vi. Insurance (Names of insurers and their

respective policies titles)

vii. Other capital products and services as

provided by the Capital Markets and

Services Act 2007 (include any

relevant detail for identification and

due diligence)


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No. Types

Purchaser,

Purchase Price

and Date and Past

and Current

Registered

Owners /

Beneficiaries

Value (in relevant

currency)

Start Date End Date

d. Other movable properties (include any

relevant detail for identification)

i. Furniture (if objects are of similar

types, state the types and their

respective quantities)

ii. Motor vehicles (model, colour and

registration number)

iii. Jewelleries / Antiques / Arts and

Cultural Objects (if objects are of

similar types, state the types and

their respective quantities)

iv. Electronic gadgets (if objects are of



v. Musical instruments (if objects are

of similar types, state the types and


vi. Sports equipment (if objects are of



vii. Club memberships (names of clubs

and their respective full addresses)

viii. Other (include any relevant detail

for identification and due diligence)

2. Immovable Property

No. Types

Purchaser, Purchase Price and Date and Past and Current Registered

Proprietors

Value (in relevant

currency)

Start Date End Date

a. Particulars of land

b. Particulars of building


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No. Types

Purchaser, Purchase Price and Date and Past and Current Registered

Proprietors

Value (in relevant

currency)

Start Date End Date

c. Particulars of residential properties

F. CREDITS

No. Debtors Date

Accrued Date Due

Value at the Time of Reporting (in

relevant currency)

(any relevant detail for

identification of and contacting the

debtors)

G. LIABILITIES

No. Creditors Date

Accrued Date Due

Value at the Time of Reporting (in

relevant currency)

(any relevant detail for

identification of and contacting the

creditors)

H. GIFTS AND/OR SPONSORSHIPS

No. Giver Place and Time Amount

Particulars of givers/donors (in relevant currency)

I. OTHER ACTIVITIES

No. Activities Date Amount

(include any detail for identification and

due diligence) (in relevant currency)


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REFERENCES

Art 8(5) of the United Nations Convention Against Corruption.

Capital Markets and Services Act 2007.

Claudia Theophilus, PM: Asset Declaration Includes Immediate, extended families (Malaysiakini 19 April 2004) <https://www.malaysiakini.com/news/19608> accessed 20 December 2017.

Freedom House, Countries at the Crossroads 2006, <http://www.ecoi.net/local_link/53211/405099_en.html> accessed 20 December 2017.

Hong Chin Chin, Reforming the System of Asset Declaration in Malaysia as a Strategy to Combat Corruption (Master’s thesis submitted to the International Anti Corruption Academy, November 2016) <https://www.iaca.int/images/sub/master/Master_Thesis_-_Chin_Chin_Hong.pdf> accessed on 20 December 2017, 39.

Komisi Pemberantasan Korupsi Indonesia, Laporan Harta Kekayaan Penyelenggara Negara Model KPK-A Form.

Legislative Council of the Hong Kong Special Administrative Region, Guidelines on Registration of Interests <http://publicofficialsfinancialdisclosure.worldbank.org/sites/fdl/files/assets/law-library-files/Hong%20Kong%2C%20China_Disclosure%20Guidelines_2006_EN.pdf> accessed on 23 January 2018.

Richard Messick, Income and Assets Declarations: Issues to Consider in Developing a Disclosure Regime (U4 Anti-Corruption Resource Centre 2009) <http://www.u4.no/publications/income-and-assets-declarations-issues-to-consider-in-developing-a-disclosure-regime/> accessed on 20 December 2017, 12-4.

Service Circular No. 3 of 2002: Ownership and Declaration of Property by Public Officers <http://docs.jpa.gov.my/docs/pp/2002/pp032002.pdf> accessed on 20 December 2017 [2].

World Bank, Income and Asset Disclosure: Case Study Illustrations (World Bank Publications 2013) 102 & 104.

https://www.malaysiakini.com/news/19608

http://www.ecoi.net/local_link/53211/405099_en.html

https://www.iaca.int/images/sub/master/Master_Thesis_-_Chin_Chin_Hong.pdf

http://publicofficialsfinancialdisclosure.worldbank.org/sites/fdl/files/assets/law-library-files/Hong%20Kong%2C%20China_Disclosure%20Guidelines_2006_EN.pdf



http://www.u4.no/publications/income-and-assets-declarations-issues-to-consider-in-developing-a-disclosure-regime/

http://www.u4.no/publications/income-and-assets-declarations-issues-to-consider-in-developing-a-disclosure-regime/

http://docs.jpa.gov.my/docs/pp/2002/pp032002.pdf

PLEDGE FOR A PUBLIC ASSET DECLARATION FRAMEWORK Asset... · 2018-03-02 · PLEDGE FOR A PUBLIC...

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